Also in Tetum Contact In Washington: Edith Wilson (202) 473-1104 ewilson1@worldbank.org WASHINGTON, November 22, 2004 ¾ The World Bank announced the debarment for up to three years of four individuals and four firms for fraudulent practices in relation to the World Bank-administered “Emergency School Readiness Project” (ESRP) in Timor-Leste. These firms and individuals will be ineligible to receive any new World Bank-financed, or World Bank-administered contracts for the periods of their debarments. These actions are part of the World Bank’s broad anticorruption efforts initiated by President James Wolfensohn in 1996. More information on the World Bank’s overall anticorruption policies and activities can be found at http://www.worldbank.org/anticorruption. World Bank Country Manager Elisabeth Huybens said, “It is vital that donor funds go towards improving lives, reducing poverty and helping Timor-Leste build the skills of its people so it can move forward as a nation. We will not tolerate the corrupt or fraudulent use of donor funds and we will act whenever accusations of such practices are brought to our attention.” The World Bank investigation was conducted by the World Bank’s Department of Institutional Integrity (INT) and involved the collection and analysis of documents as well as the interviewing of many witnesses in Timor-Leste and Australia. The World Bank’s Sanctions Committee issued notices of debarment to firms and individuals allegedly involved in fraudulent practices under the project. All of the firms and individuals were granted the opportunity to dispute the charges. The debarment decisions were based on a preponderance of the evidence that the respondents engaged in fraudulent practices during the selection process. The investigation found that the named firms and individuals colluded to decide who would win contracts under the Trust Fund for East Timor (TFET) to purchase 15,000 sets of chairs and desks for schools as part of the Emergency School Readiness Project. The colluding companies agreed to divide the different lots of furniture among them by deciding for each lot which company would have the lowest bid. The contracts, which had an estimated value of US $245,000, were cancelled once the investigation confirmed the occurrence of collusion. The furniture contracts were subsequently re-tendered nationally to support local carpenters who produced the chairs and desks. The ESRP was funded under an agreement of June 21, 2000, between the Bank, acting as Trustee of the Trust Fund for East Timor, and the United Nations Transitional Administration for East Timor (UNTAET). The objective of the Project was to assist UNTAET, in the wake of the widespread destruction following the referendum on Timor-Leste's independence, in providing school-age children with opportunities for education at a basic operational level, i.e. with safe buildings containing basic furniture, blackboards, books, and operating with teachers and principals with at least a minimal level of training. List of Debarred Firms and Individuals The firm and individual listed below have been debarred for fraudulent practice as defined under the January 1995 (revised August 1996) Procurement Guidelines 1.15(a)(ii). Their ineligibility period is for three years from October 25, 2004 to October 24, 2007. Mr. Rob Foster Arafura Projects and Consultancy The firms and individuals listed below have been debarred for fraudulent practice as defined under the January 1995 (revised August 1996) Procurement Guidelines 1.15(a)(ii). Their ineligibility period is for one year from October 25, 2004 to October 24, 2005. Mr. Jorge do Carmo CV Uai Mori Mr. Bram Chai UD Sinar Gunung Nona Mr. Manuel Leong PT Amazonas Background Information
World Bank funds are provided to help developing countries reduce poverty. The World Bank has the responsibility to ensure that the loans and credits it extends, and the trust funds that it administers, are used for their intended purposes. This policy is enforced through a comprehensive array of rules and procedures aimed at ensuring high standards of integrity, transparency, and accountability in World Bank-supported projects. The procurement procedures for World Bank-financed projects are monitored by World Bank staff to ensure that the process is free from fraudulent practices and corruption.
The World Bank Department of Institutional Integrity (INT) is charged with investigating allegations of fraud and corruption in World Bank-financed projects. The department reports directly to the President of the World Bank and is staffed by a multinational team of more than forty professionals, including investigators, legal specialists, forensic accountants, procurement specialists and experienced World Bank project managers. Additional information can be found at http://www.worldbank.org/integrity.
Allegations of fraud and corruption related to World Bank-financed projects can be reported to 1-800-831-0463, 24 hours a day and an international AT&T operator with international translation is available. To reverse charges (collect calls) dial 704-556-7046. Reports may be anonymous, and can also be made in person or online at: investigations_hotline@worldbank.org The sanctions process is an internal administrative process within the World Bank. It provides for due process to all parties involved in the sanctions process. For more information on procurement and sanctions, see: http://www.worldbank.org/procure For more information on the World Bank’s anticorruption policies and activities, see: http://www.worldbank.org/anticorruption |
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